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As the U.S. stock market experiences a pullback from record highs, with major indices like the Dow Jones and Nasdaq showing signs of volatility, investors are keenly observing economic indicators that could influence future Federal Reserve decisions. In this fluctuating environment, identifying undervalued stocks becomes crucial for investors looking to capitalize on potential growth opportunities amidst broader market adjustments.
Top 10 Undervalued Stocks Based On Cash Flows In The United States
| Name | Current Price | Fair Value (Est) | Discount (Est) |
| Clear Secure (NYSE:YOU) | $27.38 | $53.40 | 48.7% |
| UMB Financial (NasdaqGS:UMBF) | $124.97 | $244.29 | 48.8% |
| West Bancorporation (NasdaqGS:WTBA) | $23.94 | $46.42 | 48.4% |
| Equity Bancshares (NYSE:EQBK) | $47.67 | $92.84 | 48.7% |
| U.S. Physical Therapy (NYSE:USPH) | $95.66 | $187.03 | 48.9% |
| First Advantage (NasdaqGS:FA) | $19.81 | $39.49 | 49.8% |
| DoubleVerify Holdings (NYSE:DV) | $20.77 | $41.28 | 49.7% |
| VSE (NasdaqGS:VSEC) | $115.51 | $226.68 | 49% |
| Carter Bankshares (NasdaqGS:CARE) | $19.30 | $38.28 | 49.6% |
| Marcus & Millichap (NYSE:MMI) | $41.47 | $81.20 | 48.9% |
Here we highlight a subset of our preferred stocks from the screener.
Coastal Financial
Overview: Coastal Financial Corporation is the bank holding company for Coastal Community Bank, offering a range of banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region of Washington, with a market cap of approximately $1.01 billion.
Operations: The company's revenue is primarily derived from three segments: CCBX ($192.73 million), Community Bank ($78.94 million), and Treasury & Administration ($12.45 million).
Estimated Discount To Fair Value: 47.2%
Coastal Financial appears undervalued, trading at US$78.98, significantly below its estimated fair value of US$149.47. Despite recent insider selling, the company's revenue and earnings are forecast to grow substantially faster than the market average over the next three years. Recent third-quarter results showed increased net interest income and net income year-over-year. The completion of an $85.2 million equity offering could support further growth initiatives in its FinTech division under new leadership.
Sportradar Group
Overview: Sportradar Group AG, along with its subsidiaries, offers sports data services for the sports betting and media industries across the United Kingdom, the United States, Malta, Switzerland, and internationally, with a market cap of approximately $5.11 billion.